Tax treatment of education and medical expenses set in judicial agreements

The Directorate General of Taxes (DGT) has clarified the tax treatment applicable to extraordinary expenses derived from the education and health of children when these have been established through a judicial regulatory agreement. This resolution addresses the possibility of applying the special regime provided for in the Personal Income Tax (IRPF) regulations for this type of disbursement.

What the DGT has resolved

The query concerned whether higher education expenses (tuition, residence, books, training, private tutoring) and medical expenses not covered by Social Security (orthodontics, glasses, etc.) can be integrated into the special regime of Articles 64 and 75 of the Law on Personal Income Tax (LIRPF). The DGT has ruled that these concepts can affect the tax settlement provided that certain requirements are met:

• They must be formally established in a judicial regulatory agreement.
• They must correspond to the concept of maintenance defined in Article 142 of the Civil Code.
• They must be expenses actually incurred by the taxpayer.

The administration points out that the accreditation of these payments can be carried out through any means of evidence admitted in Law.

What it means for you

For parents who must satisfy maintenance payments or extraordinary expenses by judicial mandate, this resolution offers clarity on the nature of such payments. If education and health expenses are integrated into the maintenance obligation set by the court, they are not considered mere accessory payments, but can receive the tax treatment of maintenance annuities. This allows for different management in the income tax return, provided that the link with the legal maintenance obligation is maintained.

What you should do

It is fundamental that judicial agreements draft economic obligations precisely to avoid ambiguities regarding whether an expense constitutes a maintenance concept or a gift. Likewise, it is necessary to keep all documentation that proves the actual occurrence of the payments, such as invoices, bank statements, or receipts, to be able to demonstrate to the Administration the correspondence of the expenses with what is established in the agreement and current regulations. It is recommended to assess each particular situation to ensure compliance with the requirements of the LIRPF.